Investor Relations Meeting

Transcription

1 Investor Relations Meeting Information Pack May 2016

2 Table of Contents 1. Individual Deposits 2. Branch Network and Summary of Loan Portfolio by Prefecture 3. Yields on Loans and Bills Discounted by Region and Market 4. Loan Balance by Industry Ref. 1. Major Statistics for Shimane and Tottori Ref. 2. Economic Environment in Shimane and Tottori Ref. 3. Direction of Economy (1) Ref. 4. Direction of Economy (2) Ref. 5. Direction of Economy (3) 5. Changes in NPL Disposals by Factor 6. Changes in Delinquency Rate for Loans 7. Securities Portfolio 8. Plans for Interest Income 9. Earnings at Subsidiaries 10. Plans for Income from Fees and Commissions 11. Cross Shareholdings 12. CSR Activity Initiatives

3 1. Individual Deposits Individual Deposits (average balance) Number of Client Pensions Paid and Deposit Balance (Billion yen) 2, , , , , , ,354.3 Plan 2,376.5 Deposit balance (Billion yen) 1, Deposit balance (left axis) No. of customers (right axis) No. of customers (Thousand people) ,100.0 Number of Client Salaries Paid and Deposit Balance 2, ,900.0 Deposit balance (Billion yen) 1, Deposit balance (left axis) No. of accounts (right axis) No. of accounts (Thousand) ,800.0 FY2012 FY2013 FY2014 FY2015 FY2016 Plan

4 2. Branch Network and Summary of Loan Portfolio by Prefecture As of March 31, 2016 Number of branches Shimane 66 Tottori 53 Shimane and Tottori 119 Hiroshima 5 Okayama 5 Sanyo region 10 Hyogo 9 Osaka 1 Tokyo 1 Grand total 140 (Headquarters, branches and sub-branch offices) Balance of loans ( 2016): 2,605.7 billion 24.1 % 31.9 % Shimane Prefecture billion 2.0% 66 branches Hiroshima Prefecture 5 branches billion 19.1 % 0.0 % 0.5 % 80.4 % 42.0 % billion Tottori Prefecture Okayama Prefecture 25.3 % 34.8 % 20.8 % billion 53 branches 5 branches 1.7% 0.1% 1.0% 72.9 % 43.4 % Hyogo Prefecture 9 branches billion 0.8% 0.8% 4.9% 93.6 % Balance of loans by prefecture Corporates Individuals Local authorities Financial institutions Osaka Prefecture 1 branch billion Tokyo and others: billion

5 3. Yields on Loans and Bills Discounted by Region and Market Shimane and Tottori Sanyo Region (%) 4.0 Corporates Individuals (%) 4.0 Corporates Individuals FY2011 FY2012 FY2013 FY2014 FY FY2011 FY2012 FY2013 FY2014 FY2015 Hyogo and Osaka Tokyo (%) 4.0 Corporates Individuals (%) 4.0 Corporates Individuals FY2011 FY2012 FY2013 FY2014 FY FY2011 FY2012 FY2013 FY2014 FY2015 * Yields = (Aggregated interest received in the period) / (Aggregated balance) 4

6 4. Loan Balance by Industry (Billion yen) * Excludes loans to individual clients Others Mining, Stone-quarrying, Gravel-gathering Fishery Agriculture, Forestry Telecommunication Electricity, Gas, Heat, Water and Sewage Construction Transportation, Postal service Rental Finance, Insurance Real estate Services Wholesale, Retail Local authorities Manufacturing 5

7 5. Changes in NPL Disposals by Factor (Billion yen) A. Recognition of NPLs (Bankrupt: Normal or Tagged Virtually bankrupt or legally bankrupt) B. Recognition of NPLs (Bankrupt: Deemed bankrupt Virtually bankrupt or legally bankrupt) Factors FY2011 FY2012 FY2013 FY2014 FY Recognition of NPLs (total for A & B) C. Downgraded customers (Deteriorating performance: Normal or Tagged Deemed bankrupt) D. Upgraded customers (0.8) (0.3) (0.4) (1.6) (0.5) Upgraded and downgraded customers (total for C & D) (0.9) 0.6 E. Changes in collateral value F. Changes in reserve ratio (Deemed bankrupt borrowers) (0.6) G. Individual calculations (0.0) H. Debt sold (0.3) (0.0) (0.0) I. Debt forgiveness - - (0.0) - - J. Other (collections, etc.) (4.8) (1.2) (1.2) (1.4) (1.2) Other (total for E through J) (5.0) 0.6 (0.3) (0.5) 0.7 Subtotal (0.8) (0.1) 2.6 K. Joint Responsibility System (reserves, accrued expenses) L. Other (0.0) 0.0 NPL Disposals - Total (0.6) (0.0) 2.8 * NPL Disposals in FY2011 includes reversals from specific loan loss reserves of 1.2 billion yen. 6

8 6. Changes in Delinquency Rate for Loans Delinquency Rate for Loans to Corporate Clients Delinquency Rate for Loans to Individual Clients 2.0% 2.0% 1.59% 1.70% Loans to individual clients 1.5% 1.0% 0.88% 0.89% 1.5% 1.0% 1.31% 1.45% 1.40% 1.44% 1.24% 1.29% Of which, housing loans 1.24% 1.12% 1.32% 1.19% 1.18% 1.08% 0.64% 0.61% 0.5% 0.49% 0.48% 0.5% 0.30% 0.0% * Based on number of delinquent loans at month-end * The delinquency rate is based on the total amount of the loans End-Sep End-Sep End-Sep % * Based on number of delinquent loans at month-end * The delinquency rate is based on the total amount of the loans End-Sep End-Sep End-Sep

9 7. Securities Portfolio Balance of Securities by Remaining Period ( 2016) (Million yen) 1 year or less 1 to 3 years 3 to 5 years 5 to 7 years 7 to 10 years Over 10 years Period not defined Government bonds 45, , , ,134 29, , ,326 Municipal bonds 27,474 81,395 48,630 23,917 40,330 4, ,262 Corporate bonds 18,608 71,801 55,313 19,527 10,580 20,346 1, ,192 Stocks ,053 58,053 Other securities 13,694 27,162 67,147 47, ,562 18,412 47, ,708 Total 105, , , , , , ,514 1,861,544 Total Yields on Securities (domestic division) Unrealized Gains/Losses on Securities (%) 2.0 San-in Godo Bank Regional banks' average (Billion yen) Bonds Stocks Others

10 8. Plans for Interest Income (Billion yen) FY2015 (Results) FY2016 (Plan) Change over FY2015 Average balance Yields Interest Average balance Yields Interest Average balance Yields Interest Loans and bills discounted 2, % , % (0.10)% (0.5) Japanese yen 2, % , % (0.11)% (0.9) Foreign currency denominations % % % 0.3 Securities 1, % , % % 1.3 Japanese yen 1, % , % 18.3 (29.4) 0.00% (0.3) Foreign currency denominations % % (0.07)% 1.6 Deposits 3, % 5.2 3, % % 0.1 Japanese yen 3, % 2.8 3, % (0.01)% (0.4) Foreign currency denominations % % % 0.5 Other investments - Fundraising 0.9 (0.4) (1.3) Interest income (0.9) 9

11 9. Earnings at Subsidiaries (Milions of yen) Ordinary income Ordinary profit Net income FY2015 FY2014 Change Change (Ref.) Attributable Attributable Change FY2015 FY2014 over FY2015 FY2014 over Shareholdin Amount to ow ners Amount to ow ners (1) - (2) FY2014 FY2014 g ratio of parent of parent The Matsue Real Estate Co., Ltd (1) (2) % The Gogin Business Services Co., Ltd % The Gogin Staff Services Co., Ltd (10) (8) (8) % The Gogin Agency Co., Ltd (24) % The San-in Office Services Co., Ltd % Gogin Securities Co., Ltd (327) (66) (261) (330) (330) (66) (66) (264) % The San-in Servicing Co., Ltd (309) (309) (184) 95.00% The San-in General Lease Co., Ltd. 14,037 13, (335) (15) 8.55% The Gogin Guaranty Co., Ltd % The Gogin Credit Co., Ltd (10) (16) (22) (3) (13) 16.00% San-in Economics & Management Institute Co., Ltd % The Gogin System Services Co., Ltd (6) % The Gogin Capital Co., Ltd (28) % Total A 18,684 18, ,626 (741) 422 (66) (404) *Ordinary income, ordinary profit and net income at each subsidiary are adjusted figures used for consolidated account San-in Godo Bank (non-consolidated) B Reconciliations with consolidated accounts C 77,124 76, ,927 21, ,260 11,753 1,507 (4,062) (4,145) 83 (326) 127 (453) (283) 70 (353) Consolidated accounts A+B+C 91,746 90,733 1,013 22,486 23,126 (640) 12,911 12, *Details of adjustments to reconcile ordinary profit with consolidated accounts 1. Reconciliation of loan loss reserves in consolidated accounts FY million yen, FY million yen 2. Reconciliation of subsidiary dividend payments FY million yen, FY million yen *Details of adjustments to reconcile net income with consolidated accounts (portion attributable to owners of parent) 1. Reconciliation of loan loss reserves in consolidated accounts FY million yen, FY million yen 2. Reconciliation of subsidiary dividend payments FY million yen, FY million yen 10

12 10. Plans for Income from Fees and Commissions FY2012 FY2013 FY2014 FY2015 (Billion yen) FY2016 Commission income from exchange transactions Other commission income Commission from assets under management Commission from investment banking business Credit card business related commission Other Income from fees and commissions (Total) Plan 11

13 11. Cross Shareholdings Change in Cross Shareholdings Cross Shareholding Policy (Billion yen) (*) 12.5% 12.0% Book value Key item related to core capital 13.0% Gogin Securities +3.0 billion yen 12.4% 14.0% 12.0% 10.0% 8.0% 1. Basic policy on cross shareholdings San-in Godo Bank acquires cross shareholdings with the objective of increasing the Group s corporate value over the medium and long-term by investing in shares that are likely to contribute to the Group s business strategy and the regional economy. 2. Reviewing the purpose of shareholdings Based on the principles of risk and return, San-in Godo Bank regularly reviews the purpose of its cross shareholdings from the perspective of medium- and long-term economic rationale and future forecasts. Where necessary, San-in Godo Bank adjusts criteria for holding shares based on discussions with the share issuer and other criteria. As part of the process, the results of reviews of major cross shareholdings are reported to the Board of Directors % 4.0% 3. Basic policy on exercising voting rights Taking into account management policy, corporate governance and other conditions at the share issuer, San-in Godo Bank decides to exercise its voting rights after carefully assessing whether the decision will enhance the corporate value of the share issuer and the Group. 0.0 Acquisition cost of cross shareholdings FY2012 FY2013 FY2014 FY % 0.0% 4. Criteria for exercising voting rights San-in Godo Bank will oppose resolutions deemed to inhibit the share issuer s sustainable growth or increase in corporate value over the medium and long term, and resolutions deemed to interfere with San-in Godo Bank s reasons for holding the shares. * Book value/tier 1 capital used to calculate FY2012 figure, as financial statements for that fiscal year are based on Basel II standards. 12

14 12. CSR Activity Initiatives Forest Conservation Activities Cooperate with volunteer groups Volunteer activities by bank staff in Gogin Kibo-no-Mori (Gogin Forest of Hope) Save the Forest in Japan (volunteer initiatives by regional banks) Self-reliance Support for the Mentally Challenged Operating Gogin Challenged Matsue, a business office where mentally challenged residents work as specialists Paintings created at Gogin Challenged Matsue are utilized in self-reliance support activities for the mentally challenged Supporting companies Provide paintings data Pay design usage fees Gogin Challenged Matsue Provide paintings for free Shimane Prefecture Shimane Council of Social Welfare Allocate subsidies Offices and companies providing employment support for disabled residents within the Prefecture Educational Activities Sports Promotion Operation of private school Shofukan (GOGIN SHIMANE Cultural Promotion Foundation) Consistent education based on growth from primary school ages to adults Develop cognitive abilities and insight, and foster human resources who can make decisions from a broad perspective Gogin Women s Badminton Team (Promoted to Nippon League 1 in February 2016) LPGA Step Up Tour: Gogin Duo Card Ladies 13

15 Ref. 1. Major Statistics for Shimane and Tottori Shimane Prefecture Tottori Prefecture Japan Total population: 697,000 (46th in Japan) Total population: 574,000 (47th in Japan) Total population: 127,080,000 Percentage of elderly population: 31.8% (3rd in Japan) Percentage of elderly population: 29.1% (14th in Japan) Percentage of elderly population: 26.0% Number of business establishments: 35,971 (46th in Japan) Gross prefectural product: 2,300 billion yen (45th in Japan) Number of business establishments: 26,533 (47th in Japan) Gross prefectural product: 1,700 billion yen (47th in Japan) Number of business establishments: 5,542,000 Gross domestic product: 474,400 billion yen Shipment value of manufactured goods: 1,056.7 billion yen (44th in Japan) Shipment value of manufactured goods: billion yen (45th in Japan) Shipment value of manufactured goods: 305,100 billion yen Ratio of public fixed capital formation to gross prefectural product: 9.2% (3rd in Japan) Ratio of public fixed capital formation to gross prefectural product: 7.5% (9th in Japan) Ratio of public fixed capital formation to gross domestic product: 4.4% Source: 2014 Population Estimates and 2014 Economic Census by Ministry of Internal Affairs and Communications, 2014 Census of Manufactures by Ministry of Economy, Trade and Industry and FY2012 Annual Report on Prefectural Accounts and Annual Revision of GDP for FY2014 by Cabinet Office. Nominal values are used for gross prefectural products, gross domestic product and public fixed capital formation. 14

16 Ref. 2. Economic Environment in Shimane and Tottori Shimane and Tottori s Share of GDP Shares of Individual Industrial Sectors in Gross Prefectural Product Rank Prefecture Actual amount (Billion yen) Share 1st Tokyo 91, % Sanyo region and Hyogo Mainly operated by private and manufacturing sectors Shimane and Tottori Dependent on public works and construction 2nd Osaka 36, % 3rd Aichi 34, % 7th Hyogo 18, % Others 12th Hiroshima 10, % 21st Okayama 7, % 45th Shimane 2, % 47th Tottori 1, % (34th) Shimane and Tottori 4, % (2nd) Total of Shimane, Tottori, Sanyo region and Hyogo 40, % Total of all prefectures 500, % Agriculture, forestry and fisheries Construction Government service producers Manufacturing Source: FY2012 Annual Report on Prefectural Accounts by Cabinet Office * The standings in parentheses indicate rankings when the prefectures are added together. Japan total Hyogo Sanyo region Shimane and Tottori 15

17 Ref. 3. Direction of Economy (1) Business Sentiment Index (BSI) (Change over the previous period in all industries) (Percentage of companies reporting rising conditions minus those reporting falling.) Value of public works contracts (in Shimane and Tottori, coverage ratio: approx. 70%) Rise Fall (40.0) Percentage of Rising Percentage of Falling BSI (Percentage of companies reporting rising conditions minus those reporting falling ) (14.5) (15.5) (4.1) (22.9) (6.5) (21.1) (2.6) (5.0) (14.2) (11.2) 34.2 Forecast 見通し (7.7) (13.8) (Billion ( 億円 yen) ) 4, , , , , , , , , ,661 2,233 2, , , , First half: From Apr. to Sep. Second half: From Oct. to Mar. in the following year (80.0) 2H/09 1H/10 2H 1H/11 2H 1H/12 2H 1H/13 2H 1H/14 2H 1H/15 2H 1H/16 Source: Business Trend Survey by San-in Economics & Management Institute (Most recently conducted in March 2016) FY FY FY FY FY FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 年度 Source: West Japan Construction Surety Co., Ltd. Year-on-year changes in capital expenditure (in Shimane and Tottori) Housing starts (in Shimane and Tottori) (%) (Unit) ( 戸 ) (Unit) 10,000 FY2013 FY2014 FY2015 FY ,000 (Estimated) (Plan) 8,425 8,089 8,000 All industries (2.2) 7.0 6,936 6,299 Small and mediumsized companies (5.4) 6,000 4,707 4,603 Manufacturers (8.7) ,000 Small and mediumsized companies (4.7) (0.4) Non manufacturers 21.8 (24.5) 11.3 (4.9) Small and mediumsized companies 13.8 (24.5) 12.2 (10.8) Source: Business Trend Survey by San-in Economics & Management Institute (Most recently conducted in March 2016) 16 2, ,391 5,138 5,846 5,457 5, 年 Source: Ministry of Land, Infrastructure, Transport and Tourism

18 Ref. 4. Direction of Economy (2) Year-on-year changes in sales of large retail stores (%) (department stores and supermarkets) (%) Industrial Production Index (Year 2010 = 100) Tottori 鳥取県 Shimane 島根県全国 Japan (2.0) 90.0 Tottori 鳥取県 Shimane 島根県全国 Japan (4.0) 年 Source: Ministry of Economy, Trade and Industry; San-in Economics & Management Institute Year-on-year changes in sales of new passenger vehicles (%) (%) 年 Source: Trade and Industry; Statistics Dept., Tottori Prefecture and Statistical Survey Dept., Shimane Prefecture Active job opening to applicant ratio (Times) ( 倍 ) Tottori 鳥取県 Shimane 島根県 Japan 全国 (10.0) Tottori 鳥取県 Shimane 島根県 Japan 全国 (20.0) Source: 2010 Japan Automobile 2011 Dealers 2012 Association, 2013 Japan Mini 2014 Vehicles Association, 2015 年 Tottori Car Dealers Association; and Shimane Branch, Chugoku District Transport Bureau 年 Source: Ministry of Health, Labour and Welfare; Employment Security Department, Tottori Labor Bureau;and Employment Security Department, Shimane Labor Bureau

19 Ref. 5. Direction of Economy (3) Number of bankruptcies by industry (in Shimane and Tottori) Agriculture, forestry, fishery, quarrying of stone and gravel Source: TOKYO SHOKO RESEARCH, LTD. Actual number (cases) YoY change (%) Composition ratio (%) (0.0) Construction (51.5) (25.0) Manufacturing (26.7) Wholesale (50.0) (20.0) Retail (50.0) (12.5) Finance & insurance Real estate (66.7) (75.0) Transportation (25.0) 33.3 (25.0) Telecommunication (100.0) Services, etc (30.0) Total (35.6) Land prices of major commercial area (as of Jan. 1 each year) (Upper: Assessment price: Thousand yen/m 2, Lower: YoY %) Number of hotel guests at major hot spring spas* (in Shimane and Tottori) (Thousand ( 千人 people) ) 2,000 1,800 1,600 1,400 1,200 1,000 1,685 1,774 1,720 Number of tourists Tottori (2014) (Thousand people, %) Shimane (2014) (Thousand people, %) Tourist sites and facilities 1,762 1,714 Actual no. of visitors 1,591 Change over ,699 1,628 1,526 *Total of guests at major hot spring spas in Misasa, Kaike, Hawai-Togo, Matsue Shinjiko and Tamatsukuri Added Hawai and Togo hot springs to survey in 2005 Tourist sites and facilities 1,848 1,705 Actual no. of visitors 1, 年 Source: Survey by San-in Economics & Management Institute Change over 2013 Wakasa Kaido Str. Sakae-machi, Tottori city, Tottori Principal Prefectural Road Yonago Teishajo-Line Road * Meiji-cho, Yonago city, Tottori Eki-dori Asahi-machi, Matsue city, Shimane Source: Hiroshima Regional Taxation Bureau (8.8) (9.7) (7.1) (7.7) (4.2) (7.7) (8.3) (4.5) (5.7) (2.0) (10.3) (11.4) (9.7) (3.6) 0.0 * This was called the Yonago-Hirose-Line Prefectural Road until Tottori sand dunes / Inaba Hot Spring Village area 2,890 (1.7) Sakai Port area 1,877 (22.1) Yonago / Kaike Hot Spring area 1,394 (9.2) Tottori Nashinohana Hot Spring Village area 1, Mt. Daisen area 1,274 (3.8) Higashi Hoki area 738 (1.7) Yazu 218 (1.8) Uradome Coast area / Iwai Hot Spring area 152 (29.3) Okuhino area 151 (7.9) Izumo Taisha Shrine 6,647 (17.3) Hinomisaki 1,222 (21.8) Shimane Winery 868 (25.0) Tamatsukuri Hot Spring 697 (7.5) Mt. Sanbe 614 (8.8) Iwami Seaside Park 585 (2.5) Taikodani Inari Shrine Adachi Museum of Art 540 (17.9) Michinoeki Kirara Taki 490 (7.6) Source: Tourism Department, Culture & Tourism Bureau, Tottori Prefecture and Tourism Promotion Department, Shimane Prefecture

20 Numerical Data The San-in Godo Bank, Ltd.

21 Numerical Data 1 〇 Profit and loss (millions of yen) FY2011 FY2012 FY2013 FY2014 FY2015 (b)-(a) Sep Sep Sep Sep Sep (b) Gross business income 30,128 60,674 32,987 63,420 30,947 61,130 31,872 61,515 30,900 62, Excl. Net gain related to bond transactions 29,888 60,323 29,333 59,583 30,140 60,472 30,541 60,938 30,910 61, Domestic gross business income 29,021 58,226 31,831 60,584 29,056 56,963 29,148 56,279 27,958 56,122 (157) Net interest income 26,326 52,895 25,581 51,705 25,379 50,243 24,485 48,668 24,405 48,525 (143) Net fees and commissions 2,457 4,776 2,496 4,962 2,938 5,904 3,404 6,546 3,527 6,545 (1) Other income ,753 3, ,258 1, ,050 (15) International gross business income 1,106 2,447 1,156 2,836 1,891 4,166 2,723 5,235 2,941 6, Net interest income 801 1, ,279 1,652 3,793 2,504 5,296 2,887 5, Net fees and commissions (35) Other income (99) Expenses (Excl. non-recurring items) 19,430 38,389 19,777 38,559 19,702 38,353 19,119 37,222 18,870 37,068 (154) Net business profit before transfer to general reserve for possible loan losses 10,698 22,285 13,210 24,861 11,244 22,776 12,752 24,292 12,029 25, Excl. Net gain related to bond transactions 10,458 21,934 9,555 21,024 10,438 22,119 11,422 23,716 12,039 24, Transfer to general reserve for possible loan losses (1) - - (1,160) 450 1, ,414 4,214 (46) 619 (3,595) Net business profit 10,698 22,285 14,370 24,410 10,215 22,728 9,337 20,078 12,075 24,603 4,525 Net gain related to bond transactions ,654 3, , (10) Unusual profit and loss (359) (1,168) (5,750) (6,765) (1,499) (4,202) (494) 1,318 (2,059) (2,649) (3,967) Net gain related to stock transactions (1,409) (1,677) (2,008) (825) , (1,061) Bad debt expenses (2) ,542 5,675 1,271 3, (20) 2,462 2,827 2,847 Loans written-off Transfer to specific reserve for possible loan losses - - 3,417 5,189 1,152 3, (345) 2,354 2,577 2,922 Loss on sale of delinquent loans (169) Reversal of allowance for loan losses (3) 1,279 1, Ordinary profit 10,323 21,086 8,608 17,622 8,704 18,507 8,832 21,373 10,003 21, Extraordinary profit (1,607) (1,818) (1,455) (1,504) (150) (166) (227) (837) (266) (829) 8 Income before income taxes 8,715 19,267 7,152 16,118 8,553 18,340 8,604 20,536 9,736 21, Income taxes, current 2,887 5,705 3,881 7,161 3,050 4,096 4,520 7,312 3,325 7, Income taxes, deferred 977 4,358 (585) (571) 115 3,267 (1,522) 1,470 (126) 401 (1,069) Net income 4,849 9,203 3,856 9,528 5,388 10,977 5,605 11,753 6,537 13,260 1,507 Credit costs (1)+(2)-(3) (1,195) (935) 2,381 6,126 2,300 3,915 4,368 4,193 2,416 3,447 (746) Fee and commission ratio (%) (0.13) OHR(%) (0.68) * Fee and commission ratio = Net fees and commissions/gross core banking profit x 100, OHR = Expenses/Gross core banking profit x 100

22 Numerical Data 2 (%) FY2011 FY2012 FY2013 FY2014 FY2015 (b)-(a) Sep Sep Sep Sep (a) Sep (b) ROA ROE Net interest margin (Domestic operation) (0.02) Yield on interest-earning assets (0.10) Loans (0.10) Securities (0.02) Total funding cost (0.08) Deposits (0.01) 〇 Asset position (millions of yen) Sep Mar Sep Mar Sep Mar Sep Mar. 2015(a) Sep Mar. 2016(b) (b)-(a) Cash and due from banks 130, , , , , , , , , , ,082 Call loans 95, , ,325 67, , , ,595 91,595 82,971 27,718 (63,877) Bills purchased Debt purchased 5,101 5,584 5,630 6,050 6,099 7,093 6,718 7,141 7,384 8, Trading securities (159) Money held in trust 6,348 6,294 6,257 5,000 6,888 5,008 7,037 7,000 6,956 6,497 (503) Securities 1,500,837 1,478,489 1,479,614 1,597,674 1,589,944 1,628,989 1,655,774 1,757,342 1,813,611 1,861, ,202 Loans and bills discounted 2,193,069 2,230,707 2,261,133 2,288,629 2,307,798 2,318,491 2,353,898 2,442,621 2,478,321 2,605, ,110 Foreign exchange 2,390 2,511 2,334 2,734 2,686 3,329 2,761 3,154 2,956 5,615 2,461 Other assets 17,729 19,939 15,284 14,482 14,495 15,409 16,582 15,096 19,011 15, Tangible fixed assets 40,824 40,835 39,013 39,769 39,030 38,871 38,238 37,421 37,050 36,028 (1,393) Intangible fixed assets 2,573 2,695 3,140 3,695 3,249 3,010 2,777 2,518 2,173 2,067 (451) Prepaid pension cost ,118 3,198 5,139 5,773 5, Deferred tax assets 2,603 1,335 2, Customers' liabilities for acceptances and guarantees 19,664 20,100 19,689 18,905 18,835 19,117 20,234 18,319 17,465 18,031 (288) Reserve for possible loan losses (45,357) (36,270) (38,391) (39,717) (41,023) (36,321) (39,983) (36,804) (39,103) (39,232) (2,428) Reserve for investment loss (1,050) (422) (328) (75) (82) (68) (81) (26) (62) (69) (43) Total assets 3,971,586 4,093,953 4,045,171 4,210,000 4,229,526 4,448,860 4,503,473 4,760,617 4,873,411 5,138, ,531

23 Numerical Data 3 (millions of yen) Sep Mar Sep Mar Sep Mar Sep Mar. 2015(a) Sep Mar. 2016(b) (b)-(a) Total disclosed loans 2,242,181 2,280,021 2,309,134 2,337,440 2,355,889 2,367,306 2,405,175 2,494,203 2,529,910 2,664, ,873 Bankrupt and quasi-bankrupt loans 35,094 24,901 25,863 26,803 25,841 21,287 20,345 16,768 17,120 16,609 (159) (Percentage against total amount) 1.56% 1.09% 1.12% 1.14% 1.09% 0.89% 0.84% 0.67% 0.67% 0.62% (0.05%) Doubtful loans 37,361 40,612 41,124 41,275 43,580 43,968 41,281 35,802 34,209 33,438 (2,364) (Percentage against total amount) 1.66% 1.78% 1.78% 1.76% 1.84% 1.85% 1.71% 1.43% 1.35% 1.25% (0.18%) Substandard loans 11,630 10,877 13,874 12,807 14,597 14,623 14,983 14,841 15,245 16,503 1,662 (Percentage against total amount) 0.51% 0.47% 0.60% 0.54% 0.61% 0.61% 0.62% 0.59% 0.60% 0.61% 0.02% Subtotal (A) 84,086 76,390 80,863 80,886 84,018 79,879 76,610 67,412 66,575 66,551 (861) (Percentage against total amount) 3.75% 3.35% 3.50% 3.46% 3.56% 3.37% 3.18% 2.70% 2.63% 2.49% (0.21%) Normal loans 2,158,095 2,203,630 2,228,271 2,256,553 2,271,870 2,287,426 2,328,565 2,426,790 2,463,334 2,597, ,734 (Percentage against total amount) 96.24% 96.64% 96.49% 96.53% 96.43% 96.62% 96.81% 97.29% 97.36% 97.50% 0.21% Preservation (B) (1)+(2) 70,992 63,358 66,182 67,481 68,896 64,638 62,539 54,513 54,676 53,581 (932) Collateral and guarantees (1) 36,758 39,512 39,056 40,012 41,424 39,756 37,381 33,113 31,165 30,486 (2,627) Bankrupt and quasi-bankrupt loans 10,372 10,638 9,903 10,225 9,697 9,439 8,578 7,130 7,038 6,706 (424) Doubtful loans 22,720 24,878 24,876 26,169 27,584 26,852 25,508 22,798 21,107 20,752 (2,046) Substandard loans 3,665 3,994 4,276 3,616 4,142 3,464 3,293 3,184 3,018 3,027 (157) Reserve for possible loan losses (2) 34,234 23,846 27,126 27,468 27,472 24,882 25,158 21,399 23,510 23,094 1,695 Bankrupt and quasi-bankrupt loans 24,722 14,262 15,960 16,577 16,143 11,848 11,766 9,637 10,081 9, Doubtful loans 7,201 7,247 8,953 8,043 8,753 9,333 9,656 7,814 9,718 9,357 1,543 Substandard loans 2,310 2,336 2,213 2,847 2,575 3,701 3,735 3,947 3,710 3,834 (113) Coverage ratio (B)/(A) 84.42% 82.94% 81.84% 83.42% 82.00% 80.92% 81.63% 80.86% 82.12% 80.51% (0.35%) Bankrupt and quasi-bankrupt loans % % % % % % % % % % 0.00% Doubtful loans 80.08% 79.10% 82.26% 82.89% 83.38% 82.30% 85.18% 85.50% 90.11% 90.04% 4.54% Substandard loans 51.38% 58.21% 46.77% 50.47% 46.02% 48.99% 46.91% 48.04% 44.13% 41.57% (6.47%) Ratio of reserve (2)/((A)-(1)) 72.33% 64.66% 64.88% 67.20% 64.49% 62.01% 64.13% 62.39% 66.39% 64.03% 1.64% Bankrupt and quasi-bankrupt loans % % % % % % % % % % 0.00% Doubtful loans 49.18% 46.05% 55.10% 53.24% 54.72% 54.53% 61.22% 60.09% 74.18% 73.75% 13.66% Substandard loans 29.01% 33.95% 23.06% 30.98% 24.63% 33.16% 31.95% 33.85% 30.34% 28.45% (5.40%)

24 Numerical Data 4 Classification of loans and bills discounted by types of industry (millions of yen, %) Mar Mar Mar Mar (a) Mar (b) (b)-(a) Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage Total loans (Excl. special international financial transactions account) 2,230, ,288, ,318, ,442, ,605, ,110 - Manufacturing 331, , , , , ,551 (0.25) Agriculture and forestry 4, , , , , Fishery 1, , , , , Mining and quarrying of stone and gravel 1, , , , , (196) (0.01) Construction 75, , , , , (3,038) (0.34) Electric power, gas, heat supply, and water supply 46, , , , , (0.11) Telecommunication 18, , , , , (2,049) (0.14) Transport and postal activities 67, , , , , , Wholesale and retail 258, , , , , ,639 (0.31) Finance and insurance 91, , , , , , Real estate and goods rental and leasing 281, , , , , , Services 225, , , , , ,334 (0.57) Local government 296, , , , , ,044 (0.46) Others 531, , , , , , Foreign and special international financial transactions account Total 2,230,707-2,288,629-2,318,491-2,442,621-2,605, ,110 -

25 Numerical Data 5 (millions of yen) Sep Mar Sep Mar Sep Mar. 2014(a) Sep Mar. 2015(a) Sep Mar. 2016(b) (b)-(a) Loans to individuals 459, , , , , , , , , ,139 55,260 Housing loans 404, , , , , , , , , ,615 47,249 Other loans 54,676 54,936 59,168 60,823 65,820 66,561 69,286 76,513 82,641 84,524 8,011 Loans to small and medium-sized companies 1,335,507 1,352,372 1,350,740 1,400,833 1,416,235 1,448,896 1,473,817 1,540,692 1,569,144 1,663, ,737 (Percentage against total amount) 60.89% 60.62% 59.73% 61.20% 61.36% 62.49% 62.61% 63.07% 63.31% 63.83% 0.76% Risk managed loans (1) 82,876 75,230 79,718 79,560 82,707 78,509 75,436 66,442 65,665 65,646 (796) (Percentage against total amount) 3.77% 3.37% 3.52% 3.47% 3.58% 3.38% 3.20% 2.72% 2.64% 2.51% (0.21%) Loans to borrowers under bankruptcy proceedings 13,644 4,702 5,534 5,555 5,474 4,146 4,022 2,355 2,405 2,015 (340) (Percentage against total amount) 0.62% 0.21% 0.24% 0.24% 0.23% 0.17% 0.17% 0.09% 0.09% 0.07% (0.02%) Non-accrual past due loans 57,601 59,651 60,308 61,196 62,635 59,738 56,430 49,245 48,014 47,127 (2,118) (Percentage against total amount) 2.62% 2.67% 2.66% 2.67% 2.71% 2.57% 2.39% 2.01% 1.93% 1.80% (0.21%) Loans past due for three months or more (Percentage against total amount) 0.00% ( -%) 0.00% ( -%) 0.01% ( -%) 0.00% 0.00% 0.00% 0.00% 0.00% Loans with altered lending conditions 11,598 10,877 13,873 12,807 14,176 14,623 14,982 14,762 15,243 16,413 1,651 (Percentage against total amount) 0.52% 0.48% 0.61% 0.55% 0.61% 0.63% 0.63% 0.60% 0.61% 0.62% 0.02% Reserve for possible loan losses 45,357 36,270 38,391 39,717 41,023 36,321 39,983 36,804 39,103 39,232 2,428 General reserve (2) 13,279 14,620 13,460 15,071 16,100 15,120 18,534 19,334 19,287 19, Specific reserve (3) 32,078 21,650 24,931 24,645 24,922 21,200 21,448 17,469 19,815 19,278 1,809 Reserve for specific foreign borrowers (4) Reserve ratio ((2)+(3)+(4)/(1)) 54.72% 48.21% 48.15% 49.92% 49.60% 46.26% 53.00% 55.39% 59.54% 59.76% 4.37%

26 Numerical Data 6 (millions of yen) FY2011 FY2012 FY2013 FY2014 FY2015 (b)-(a) Sep Sep Sep Sep (a) Sep (b) Net gain related to bond transactions ,654 3, , (10) Gains on sales 311 1,123 4,056 4, ,422 1, ,053 (374) Gains on redemption Losses on sales (679) Losses on redemption Amortization Net gain related to stock transactions (1,409) (1,677) (2,008) (825) , (1,061) Gains on sales , ,067 (659) Losses on sales Amortization 1,228 1,509 2, Sep Mar Sep Mar Sep Mar Sep Mar (a) Sep Mar (b) (b)-(a) Holding gains and losses of securities 53,732 55,456 54,097 70,162 59,952 62,000 71,521 93,586 84, ,581 13,995 Held to maturity (19) (53) (45) (52) (100) (97) (69) (87) Other securities (A) 53,751 55,509 54,143 70,214 60,053 62,097 71,590 93,673 84, ,549 13,876 Stocks (957) 1,302 (4,527) 4,473 10,994 11,838 14,945 21,985 21,361 17,861 (4,124) Bonds 50,803 50,489 53,076 59,417 46,872 47,763 50,153 52,239 50,958 71,203 18,964 Others 3,904 3,717 5,594 6,322 2,186 2,495 6,492 19,448 12,324 18,484 (964) Deferred tax liabilities on (A) (B) 21,627 19,474 19,067 24,627 21,024 21,731 25,075 29,782 27,403 32,555 2,773 Net holding gain on other securities (A)-(B) 32,123 36,035 35,076 45,586 39,029 40,366 46,514 63,891 57,240 74,993 11,102

27 Numerical Data 7 〇 Liabilities and net assets (millions of yen) Sep Mar Sep Mar Sep Mar Sep Mar. 2015(a) Sep Mar (b) (b)-(a) Deposits 3,459,822 3,584,965 3,535,882 3,618,260 3,617,285 3,697,340 3,694,121 3,793,064 3,789,426 3,883,269 90,205 Negotiable certificate of deposits - 7,000-1,200-20,500-1, (1,500) Call money 27,859 16,432 11,890 11,332 14,775 9,124 6,018 5,487 28,177 31,550 26,063 Cash collateral received under securities lending 36,941 39,280 38,030 61,335 84, , , , , , ,170 Bills sold Borrowed money 91,690 98, , , , , , , , , ,162 Subordinated borrowings Foreign exchange (5) Other liabilities 42,558 26,235 32,280 69,689 48,494 69,658 57,318 98,476 42,312 95,400 (3,076) Reserve for employees' bonuses (16) Reserve for bonuses to directors and corporate auditors Reserve for employees' retirement benefits 11,260 11,550 10,461 8,913 8,457 8,417 9,745 9,650 9,385 9,325 (325) Reserve for retirement benefits for directors and corporate Reserve for loss on repayment of dormant deposits (23) Other reserve for contingent losses Deferred tax liabilities ,433-3,827 4,525 12,341 9,915 15,663 3,322 Deferred tax liabilities for land revaluation excess 3,778 3,284 3,094 3,094 3,077 3,073 3,058 2,627 2,602 2,376 (251) Acceptances and guarantees 19,664 20,100 19,689 18,905 18,835 19,117 20,234 18,319 17,465 18,031 (288) Total liabilities 3,695,307 3,809,518 3,759,877 3,909,112 3,932,121 4,145,117 4,192,140 4,426,161 4,541,093 4,782, ,469 Common stock 20,705 20,705 20,705 20,705 20,705 20,705 20,705 20,705 20,705 20,705 0 Capital surplus 15,519 15,516 15,516 15,516 15,524 15,516 15,516 15,516 15,516 15,516 0 Retained earnings 206, , , , , , , , , ,452 10,064 Treasury stock (2,238) (944) (2,033) (848) (2,142) (756) (1,750) (766) (1,222) (629) 137 Net unrealized gain (loss) on other securities 32,123 36,035 35,076 45,586 39,029 40,366 46,514 63,891 57,240 74,993 11,102 Net deferred gain (loss) on hedging instruments (23) (7) (10) (12) (6) (8) 4 (85) 27 (43) 42 Land revaluation excess 2,870 3,377 3,203 3,203 3,193 3,186 3,159 3,138 3,087 3,001 (137) New share reservation rights (146) Total net assets 276, , , , , , , , , ,518 21,063 Total liabilities and net assets 3,971,586 4,093,953 4,045,171 4,210,000 4,229,526 4,448,860 4,503,473 4,760,617 4,873,411 5,138, ,531

28 Numerical Data 8 (millions of yen) Sep Mar Sep Mar Sep Mar Sep Mar. 2015(a) Sep Mar. 2016(b) (b)-(a) Non-consolidated capital adequacy ratio (domestic standard) 16.24% 16.36% 14.68% 15.76% 14.82% 0.14% Capital 258, , , , ,353 10,943 Basic item for Core Capital 261, , , , ,402 11,881 Adjustment item for Core Capital (-) 3,900-1,111 1,079 2, Risk-weighted assets, etc. 1,589,146 1,616,685 1,821,283 1,753,719 1,877,154 55,871 Consolidated capital adequacy ratio (domestic standard) 17.26% 17.43% 15.71% 16.84% 15.68% (0.03%) Capital 280, , , , ,760 8,560 Basic item for Core Capital 284, , , , ,414 8,119 Adjustment item for Core Capital (-) 3,949-1, (441) Risk-weighted assets, etc. 1,626,467 1,644,880 1,833,558 1,765,107 1,891,749 58,191 (millions of yen) Sep Mar Sep Mar Sep Non-consolidated capital adequacy ratio (domestic standard) 17.18% 16.43% 17.33% 17.06% 17.76% Capital 244, , , , ,288 Tier I 240, , , , ,265 Of which, Core Tier I 216, , , , ,210 Tier II 4,087 3,091 2,924 2,934 2,932 Deductions (-) 655 2,864 2,060 1, Risk-weighted assets, etc. 1,420,658 1,472,498 1,417,557 1,476,193 1,442,961 Consolidated capital adequacy ratio (domestic standard) 18.02% 17.30% 18.27% 17.99% 18.72% Capital 262, , , , ,828 Tier I 259, , , , ,061 Of which, Core Tier I 234, , , , ,490 Tier II 4,977 3,518 3,340 3,376 3,422 Deductions (-) 2,714 5,025 4,123 4,075 3,655 Risk-weighted assets, etc. 1,454,364 1,504,843 1,449,908 1,505,998 1,472,694 (Notes) 1. Capital adequacy ratio is calculated in accordance with the new capital adequacy ratio regulations (Basel III) from FY The method used for calculating credit risk-weighted assets and operational risk have changed, from SA to FIRB since FY2010 and from BIA to TSA since FY2008, respectively. 3. Core Tier I = Tier I - Amount equivalent to tax effect (net deferred tax assets excluding deferred tax assets/liabilities for valuation difference on available-for-sale securities and deferred gains and losses on hedges) Sep Mar Sep Mar Sep Mar Sep Mar (a) Sep Mar (b) (b)-(a) Nikkei stock index (yen) 8,700 10,083 8,870 12,397 14,455 14,827 16,173 19,206 17,388 16,758 (2,448) Exchange rate ($ = Yen, average price at year end) (7.49) 〇 Other indicators Sep Mar Sep Mar Sep Mar Sep Mar (a) Sep Mar (b) (b)-(a) Number of branches (3) Number of employees 2,061 2,017 2,022 1,996 2,015 1,983 2,032 1,987 2,029 1,978 (9) (Yen) Dividend per share Net income per share Net assets per share 1, , , , , , , , , , PBR (times) (0.16) PER* (times) (5.1) Stock price , (295) * PERs in the first half of fiscal years are on an annualized basis.